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Tuesday, 2 August 2011

ACCEPTANCE :-
It is defined in the following words :"When the person to whom the proposal is made signifies his assent there to the proposal is said to be accepted. Proposal and acceptance both can be made by words or by conduct. Without the acceptance of a proposal no agreement come into existence."

Example :- Suppose Mr. Shah offers to sell his hotel to Mr. Salman for Rs. 50 lac. Mr. Salman accepts the offer to purchase the hotel for Rs. 50 lac. This is acceptance.

ESSENTIAL OF ACCEPTANCE :-
Essentials or rules relating to valid acceptance are following :

1. Acceptance by Authorized Person :-
Communication of acceptance should be made by a person who has the authority to accept it. If unauthorized person provides the information it is ineffective.

Example :- Mr. Akram sold his company to Mr. Nawaz for Rs. 10 million. Mr Ashraf now gives the supply order for the goods to Mr. Akram by name. Mr. Nawaz received the order and supplied. There was no contract between Mr. Nawaz and Mr. Ashraf because offer was not made to Mr. Ashraf.

2. Specific Time :-
If time limit is specified then acceptance must be given within that period. Otherwise within a reasonable time it must be given.

3. Acceptance Before Offer Lapses :-
If the acceptance is made after the withdrawn or lapses of offer, then it is not a valid acceptance. Acceptance must be made before the offer lapses.

4. Acceptance After Communication :-
Before the communication of offer, acceptance cannot be given. Acceptance cannot be valid if it is given before the communication of offer.

Example :- Mr. Awan is thinking to sell his car to Mr. Ram. But Mr. Ram writes him a letter of acceptance. The acceptance is not valid as it has been given before offer.

5. Particular Manner :-
Acceptance must be given according the particular manner prescribed in the offer, if acceptance is not given according to that then it can be rejected by the offer. If there is no such type of any condition then it can be made in a reasonable way.

6. Intention Must be Shown :-
Acceptance must show the intention of the acceptor to accept the offer. Intention to accept the offer can be shown by words, or by conduct. Silence does not show acceptance.

Example :- Mr. Rana offers to sell his house to Mr. Jhon. If Mr. Jhon accepts it by writing a letter. This is an express acceptance.

7. Acceptance Informed :-
When acceptance comes to the knowledge of the proposer it becomes irrevocable and it becomes a valid acceptance.

8. Complete Acceptance :-
All the terms and conditions of the offer should be accepted by the acceptor. If any part of the offer is rejected then acceptance can not be called valid.

Example :- Mr. Farid offers to sell his three horses for Rs. 3 lac to Mr. Khan. Mr. Khan agrees to purchase one horse only. It is not a valid acceptance.

9. Case of Refusal :-
If once the offer is rejected by the acceptor, then it can not be accepted by the acceptor. Unless it is renewed by the proposer. Renewal is necessary for a valid acceptance.

10. According to Act :-
Acceptor must accept the proposal according to the requirements of the act. If he ignores the requirements of act then it is not a valid acceptance.